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Indonesia: PLN Union rejects new electricity law

ImageThe Indonesian House of Representatives again passed its new controversial electricity law on 8 September,  to allow the free market economy to come into play in the power sector and to fully privatise power generation, distribution and supply. Over 2000 workers, members of the PLN union, took part in a rally to reject the law. The former electricity law (No. 20/2002) was annulled by the Indonesia Constitutional Court with  their landmark decision of December 2004. In its judgment, the Court made reference to international experiences that privatisation of electricity has failed in other countries and quality public services in electricity need to be provided through the public sector.
The PLN union has threatened to call for a national strike if the government implements the new law. Indonesia President Susilo Bambang Yudhoyono has set up a meeting with the union on 8 October. PLN has a strategic position in the Indonesian electricity generation sector, and they have a significant social, economic and political role. The union will continue to support and protect the interests of the public for accessible and affordable electricity.


 
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